bankruptcy. >> reporter: if a deal is not reached, taxes go up and spending will be clashed. defense contractors are sending the message to lawmakers those cuts would damage the military industry and weaken national security. the ceo of task, a company that develops aviation systems and software for intelligence agencies: >> over 50% of the defense budget is procuring services and services are underscored by jobs. so of course there will be job loss if you have cuts. >> reporter: the cliff hits at the end of the year. but congressional leaders say a compromise needs to be figured out in the next couple of weeks so lawmakers have enough time to debate and pass it. in washington, danielle nottingham, cbs 5. >>> so if democrats and republicans do not reach a deal, the tax policy center estimates the average american will have to pay nearly $3,500 more in taxes next year. >>> still ahead, there's a royal bun in the oven. but things aren't going so well for the duchess of cambridge. the latest on her condition in a london hospital. >> and was it a freak accident or a preventible problem?